Due to recent increases in the Consumer Price Index (CPI), the Cost of Living
Allowance (COLA) for Urban regular employees will generate a COLA payment for the period of November 1, 2021 to January 31, 2022.
CLAUSE 35.09 OF THE URBAN COLLECTIVE AGREEMENT
The Urban collective agreement provides for the COLA to be paid to regular
employees as follows:
• 35.09(a)(ii) The allowance will be paid on a basis of one cent (1 ¢) per hour
for each full zero point zero five zero four (0.0504) of a point
increase in the C.P.I. above the adjusted index which is five point
thirty‐three percent (5.33 %) greater than the C.P.I. index
published for January 2020.
THE CALCULATION
The CPI for January 2020 was 136.8
The adjusted index is 144.1
The CPI for November 2021 was 144.2 (triggering the COLA)
The CPI for January 2022 was 145.3
The difference between the adjusted index and January 2022 is 1.2
1.2 divided by 0.0504 = 23.8
Therefore, the COLA will be 23 cents per hour paid from November 1, 2021 to
January 31, 2022.
Examples: Not including overtime, a full-time Urban employee would have been paid for 66 days or 528 hours during November 1, 2021 to January 31, 2022. The COLA of $0.23 per hour will amount to $121.44 before taxes. They will also receive COLA for all overtime hours paid. A part-time employee working and paid for 25 hours per week would receive $75.90 before taxes.
PROVISIONS IN THE COLLECTIVE AGREEMENT
The COLA is paid to regular employees. COLA payments will be made as a lump sum and paid in arrears. Any allowance paid shall not affect any premium rates or pensionable income but shall be included in computing pay for statutory holidays and paid leave.
RSMC COLA COMPARED TO THE URBAN COLA
The Urban and RSMC collective agreements have different expiry dates and
therefore different periods for the COLA calculation. The period for RSMCs was October – December 2021 while for Urban, it was November 2021 – January 2022. The Consumer Price Index (CPI) in December 2021 actually declined from what it was in November 2021 while the CPI in January 2022 increased considerably from what it was in December 2021. This resulted in a higher COLA payment for Urban employees.
For information on the CPI during these months, click the following link:
https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=1810000401
NEW COLA IN RENEWAL AGREEMENTS
The new 2-year renewal agreements began on January 1, 2022 for RSMCs and
February 1, 2022 for Urban.
These renewal agreements also contain Cost of Living Allowances. See clause 33.06 of the RSMC collective agreement and clause 35.09 of the Urban collective agreement.
In Solidarity,
Carl Girouard
National Grievance Officer 2019/2023 Bulletin #369 /vm-